A $13-million check, part of a $38-million financing package to save the jobs of 1000 Okonite Co. employes— including those at the company's North Brunswick NJ plant -- was presented to state officials here yesterday.
The grant is to be used by the N.J. Economic Development Authority to establish a revolving loan fund for businesses and industries threatened by plant closings and loss of jobs.
The check will be used to fund the first authority project, a loan to Okonite’s Employe Stock Ownership Trust, which hopes to purchase the company from bankrupt Omega- Alpha, Inc. of Dallas, Tex., Okonite’s parent firm.
New Jersey Hep. Robert A. Roe. D-8th. chairman of the House subcommittee on economic development, presented the check to state officials
The authority will loan the $13 million together with an additional $4 million loan guarantee to employes of one of the nation’s major corporations manufacturing high-tension wire and cable products.
The remaining $21 million needed to purchase Okonite is to come from a line of credit from a banking syndicate headed by the Bank of America.
The $4 million which the state is guaranteeing comes from private financial institutions.
About 360 employes’ jobs would be saved at the North Brunswick plant.